Answer:
October 1
Explanation:
Layaways are like reverse credit card shopping. In a layaway the customer pays for the product first (in installments) and then they can take it home.
Total price = $85
down payment = $85 x 20% = $17
remaining amount = $68 / $8 = 8.5 ≈ 9 monthly payments
Rhonda should start to make her first monthly payment in October 1. Her last payment will be due in June.
Answer:
(B) If the explicit cost for the consulting job is $25,000 per year, your economic profit is equal to $45000.
Explanation:
Economic profit is obtained by substracting explicit (monetary) costs, and implicit (opportunity) costs, from total earnings.
In this case, the earnings for working as an economic consultant are $100,000. The implicit, opportunity cost is the $30,000 that are given up because of quitting the serving job. If the explicit cost of renting an office, purchasing supplies and buying a computer is $25,000, then, we have the following equation:
Economic profit = earnings - explicit costs - implicit costs
= $100,000 - $25,000 - $30,000
= $45,000
Answer:
Margin of safety ratio= 0.36= 36%
Explanation:
Giving the following information:
Liu Company has sales of $48,500,000, and the break-even point in sales dollars is $31,040,000.
To calculate the margin of safety as a percentage, we need to use the following formula:
Margin of safety ratio= (current sales level - break-even point)/current sales level
Margin of safety ratio= (48,500,000 - 31,040,000) / 48,500,000
Margin of safety ratio= 0.36= 36%
Answer:
- $25.50
- 90,000 units
- 140,000 units
Explanation:
1. Current contribution margin ratio
= (Selling price - Variable cost)/ Selling price
= (25 - 19.8) / 25
= 0.208
New Direct labor = 5.0 * ( 1 + 8%)
= $5.40
New variable cost = 19.8 + 0.4 = $20.20
To maintain 0.208
0.208 = (Selling price - 20.20) / Selling price
0.208 * Price = Price - 20.20
0.208Price - Price = -20.20
-0.792Price = -20.20
Price = -20.20/-0.792
Price = $25.50
2. Breakeven = Fixed Cost / Contribution Margin
Contribution Margin = Selling price - Variable cost
= 25 - 19.8
= $5.20
= 468,000/5.2
= 90,000 units
3. To earn $260,000;
= (Fixed Cost + 260,000) / Contribution margin
= (468,000 + 260,000) /5.2
= 140,000 units
